Alabama Property and Casualty Practice Exam

Under broad form cause of loss, who is responsible for proving a claim?

1. insured

2. company

3. assignee

4. mortgagee

The correct answer is: insured

In the context of the broad form cause of loss, the insured holds the responsibility for proving a claim. This means that when a loss occurs, it is the insured's duty to provide sufficient evidence to support their claim for coverage under their insurance policy. The burden of proof lies with the insured to demonstrate that the loss is covered by the policy terms, including showing the extent of damage or loss incurred, and detailing how the incident falls under the conditions of coverage. Generally, insurance policies require the insured to report claims promptly and cooperate with the insurer in the investigation process. This crucial aspect reinforces the insured's responsibility, as they must substantiate their claims with necessary documentation and information. By placing this burden on the insured, the insurance contract aims to ensure that claims are valid and justifiable. Meanwhile, other parties such as the insurance company, assignee, or mortgagee do not have the primary obligation to establish the validity of the claim. The insurance company evaluates the claim based on the evidence provided, while an assignee may receive the rights to a claim but does not take on the burden to prove it. The mortgagee's concern typically relates to protecting their interest in the property rather than proving the loss itself.